Here are some of the basic agreements needed for buying, selling, and merging of businesses:
a. Buy/Sell Agreements – This document will ensure proper transfer of assets while protecting both parties with respect to activities following the consummation.
b. Promissory Notes – This document will ensure the debtor pays no more than what he/she owes while giving him/her the opportunity to use the debt. It also protects the creditor by having an enforceable document that can evidence a debt is owed.
c. Bill of Sale – This document will detail the item(s) being purchased and for a particular price. It will be a record of the transaction will have taken place.
d. Merger & Acquisitions – These are various documents encompassing either a complex merger with another entity and/or an acquisition of an entity. These document help ensure all details with respect to the transactions along with the purchase and transfer are considered.
e. Resolutions (if applicable) – As many separate legal entities, all corporations and LLC’s (absent specific language in the company documents) require approval for company altering decisions such as the sale of large assets or, under certain circumstances, sale of ownership shares/interests. This document ensures the transaction has been authorized by the company so as to avoid the transaction being voided later on.
f. Changes to Corporate Documents – Corporations and LLC’s are to keep record of shareholders and members, respectively. Our firm we ensure, documentation held by the Client is updated for any changes to take place. Furthermore, if necessary, our firm will help make sure the Client’s information is updated with the State.